You aren’t poor you just have bad spending habits

Consumer spending, a significant driver of the U.S. economy, consistently contributes approximately 70% to its overall economic activity. This spending encompasses a wide array of purchases, categorized into two main segments. Firstly, non-discretionary spending entails essentials such as food, medicine, housing, and clothing, which are deemed necessary for daily living. Secondly, discretionary spending comprises non-essential goods and services, including items related to leisure, hobbies, and indulgences. Delving deeper into discretionary spending unveils a diverse spectrum of expenditures reflecting the nation's interests, hobbies, amusements, indulgences, and vices. Below I have compiled some things that you can do to prevent having bad spending habits and how you can improve them.

Top 3 Ways to Avoid Developing Bad Spending Habits:

1. Budgeting: Create a detailed budget outlining your income and expenses. Stick to it diligently to avoid overspending and impulse purchases.

2. Tracking Expenses: Keep track of every

expense, whether big or small. Use apps or spreadsheets to monitor where your money is going and identify areas where you can cut back.

3. Setting Financial Goals: Establish clear financial goals and prioritize them. Whether it's saving for a house, retirement, or an emergency fund, having goals in place can help you stay focused and motivated to avoid unnecessary spending.

Top 3 Ways to Fix Bad Spending Habits:

1. Identify Triggers: Recognize the triggers that lead to your impulsive spending behavior. Whether it's stress, boredom, or peer pressure, understanding these triggers can help you develop healthier coping mechanisms.

2. Create a Repayment Plan: If you're in debt due to overspending, create a repayment plan to tackle it systematically. Prioritize high-interest debt and consider consolidating loans or negotiating with creditors to ease the burden.

3. Seek Financial Education: Educate yourself about personal finance and money management. Attend workshops, read books, or seek guidance from financial advisors to gain a better understanding of how to manage your finances effectively.

Remember, the system is designed to keep us stuck, broke, and confused. By taking control of our finances and developing healthy spending habits, we can break free from this cycle and achieve financial freedom.